Ghana’s Sinking Fund, established to support debt repayments, holds a balance of only $64,000 and GHS143 million, President John Dramani Mahama has revealed, casting doubt on claims by the previous Akufo-Addo administration that it left significant reserves to manage the country’s liabilities.
Delivering his first State of the Nation Address (SONA) of his second term on February 27, 2025, Mahama painted a sobering picture of Ghana’s fiscal position, warning of an arduous path to economic stability.
“There have been claims that buffers were left for ongoing debt repayments in 2025. The Sinking Fund shows a balance of only $64,000 in the dollar account and GHS143 million in the Cedi account,” the president stated.
Mahama underscored the country’s escalating debt burden, noting that debt servicing over the next four years will amount to GHS280 billion—comprising GHS150 billion in domestic debt and GHS130 billion in external debt servicing.
“The repercussions of the accumulation and economic mismanagement will require extensive work and sacrifices to repair,” he added.
The figures suggest a challenging fiscal environment for the new administration, which now faces the task of implementing reforms to restore market confidence and stabilize the economy.
Investors and analysts will be watching closely for the government’s monetary and fiscal policy responses in the coming months.
